API views relationship development with key shareholders as the primary mechanism to
ensure a share price enjoys maximum risk reduction. Filtered through this lense, value is
created as institutions pay more for the stock in an uptick and a "benefit of the doubt"
buffer defends the stock price in a down market: The measure of investor confidence.
How do our Clients use the data?
Tracy Rawa, Manager Investor Relations, Creo Inc. (now a subsidiary of Eastman
Kodak)
"As an IR professional, it is difficult to explain to board members and senior
management that most public companies don’t know who its shareholders are on a
timely basis with any reliability. Because of course – this is critical information for
investor relations!
API Director Services saved the day for Creo in this regard. It proved to be a
significant asset by radically increasing the insight and accuracy of information we
received about the company’s shareholder base when we needed it the most. API’s
analysis nearly doubled the percentage of shareholders identified. It provided the
confidence that we were targeting the right shareholders and allowed for more
effective and strategic use of senior management and board time in their direct
communications with investors and shareholders."
Where does the data come from?
API Director Services was formed in 2000 with an exclusive relationship with API Asset
Performance Inc to provide pension shareholding data to issuers to enhance their
performance. API has 14 employees and is Canada's largest domestically-owned firm
focused on investment measurement and asset consulting. Services include placing
institutional money managers with plan sponsors. Founded in 1980, API Asset
Performance measures over $300 billion in assets.
What is unique about our service? API delivers the influential Top 60 pension
institutional investors' shareholding details regularly each quarter. With a FIVE year
history, our exclusive information comes from a known base of invested assets. We
derive an estimate of total position size from known positions provided by these money
managers. Each API manager's position in a peer group is available.
Why does this matter more today? With consolidation within the money management
industry, a small number of these pension institutional investors control between 20% -
40% of each issuer's float, concentrating power in the hands of few. Typically some 80%
of an issuer's float is controlled by institutions.
Performance related pressures are forcing the institutions to confront the governance
shortcomings of their investments. Their power is directly related to the number of
shares controlled on behalf of underlying plan sponsors, the beneficial owners. The
market outlook, combined with low investor confidence, suggests strongly that making
Directors accessible to key institutional investors will be the only remaining route to
rebuilding trust.
Other business relationships
API has an exclusive relationship to provide institutional shareholding data and reports
to Trust-Builder Inc. A variety of communications services are provided through
Trust-Builder.
Visit our Services page for a detailed list of report types and Trust-Builder Services.
